Overview of the Company’s Financial Performance

New York Mortgage Trust, Inc. (the “Company”) is an internally-managed real estate investment trust (REIT) that invests primarily in mortgage-related assets. The Company’s principal objective is to generate long-term stable earnings for distribution to its stockholders.

In the first quarter of 2025, the Company continued to expand its investment portfolio, acquiring approximately $1.9 billion in assets. This contributed to a 55% increase in interest income and a more than 57% increase in adjusted interest income, a non-GAAP financial measure, compared to the same period in 2024. The Company generated net income attributable to common stockholders of $0.33 per share and earnings available for distribution, a non-GAAP measure, of $0.20 per share for the first quarter of 2025, demonstrating continued momentum in portfolio growth and income generation.

Revenue and Profit Trends

The increase in interest income was primarily due to the Company’s expanded investments in Agency residential mortgage-backed securities (RMBS) and business purpose loans. However, the increase in interest expense was also significant, driven by higher financing costs to fund the investment activity through repurchase agreements, securitizations, and the issuance of senior unsecured notes.

The Company’s net loss from real estate decreased in 2025, primarily due to a reduction in expenses as a result of the sale or de-consolidation of certain multi-family real estate assets. Realized losses on the investment portfolio increased, mainly from the sale of U.S. Treasury securities, but were largely offset by unrealized gains on the portfolio due to decreases in interest rates.

The Company recognized net losses on derivative instruments in 2025, primarily due to decreases in interest rates, which resulted in lower valuations of its interest rate swaps. This was partially offset by gains realized on contract terminations and net payments received on the instruments.

Strengths and Weaknesses

The Company’s key strengths include its ability to actively manage and grow its investment portfolio, generating increased interest income and earnings. The diversification of its investments, including Agency RMBS, business purpose loans, and residential loans, has helped mitigate risks and provide stable returns.

However, the Company’s reliance on leverage and financing, particularly through repurchase agreements and securitizations, exposes it to interest rate and credit risks. The strategic repositioning of the business, including the opportunistic disposition of multi-family investments, also introduces some uncertainty and transition risks.

Additionally, the Company’s exposure to the residential and multi-family real estate markets makes it vulnerable to broader economic and market conditions, such as changes in interest rates, inflation, and the availability of investment opportunities.

Outlook and Future Prospects

Looking ahead, the Company expects to continue opportunistically disposing of its multi-family portfolio and generating higher portfolio turnover to pursue investments across the residential housing sector, with a focus on acquiring assets capable of growing its interest income. The Company remains committed to prudently managing its liabilities and intends to continue pursuing longer-term, non-mark-to-market financing arrangements for portions of its credit portfolio.

The Company’s investment and capital allocation decisions will depend on prevailing market conditions and may change over time in response to opportunities available in different economic and capital market environments. Factors such as interest rate volatility, inflation, trade policy, and the overall economic outlook will likely continue to influence the Company’s performance and strategic decisions.

Overall, the Company has demonstrated its ability to navigate challenging market conditions and adapt its investment strategy to generate stable earnings for its shareholders. However, the Company’s future success will depend on its continued ability to identify and acquire attractive assets, manage its financing and risk exposures, and adapt to evolving market dynamics.